An article by Agence France-Presse (AFP) in the South China Morning Post elaborates that Suntech,

"has been badly hit by oversupply in the global market for solar cells and panels, as well as trade disputes with the United States and Europe over alleged Chinese dumping and government subsidies to producers. Chinese firms, including Suntech, have denied the claims."

Profits in the solar industry have been generally hard to come by. Worsening matters for Chinese solar exporters, the U.S. recently increased import tariffs on their goods.

“The government clearly has intervened and wants to reorganise the company and maintain production,” Liu Wenping, a partner at Shanghai-based solar investment consulting firm Sapphire Capital told AFP.

Suntech's board ousted company founder Shi Zhengrong as chairman earlier this month, in a move Shi called "unlawful." One source said Shi has government support and could return in the reorganization, AFP noted.